Most non-nationals are liable for taxation on any income earned in the United States from the beginning of their arrival in the U.S. Income normally includes salary, scholarships/fellowships, income from U.S. mutual funds or U.S. bank accounts, etc. Taxes for each calendar year (in this case, 2008) are reported in the Spring of the following year and tax forms are filed with both the U.S. Government (federal) through the International Revenue Service (IRS) and the U.S. state/s in which income was earned. For example, if you earned income in California (CA) and New York (NY) you would file separate state forms for both CA and NY.
This tax season you have until April 15th to file your federal and state forms. Generally, all F-1 and J-1 students and their dependents are considered non-residents (NR) for tax purposes for their first five years in the United States and would file federal form 1040NR (long form) or 1040NR-EZ (short form). Scholars are typically considered NR regarding taxation for their first two years in the United States. H-1B, TN or O-1 status holders who have been in the U.S. for more than 183 days should go to the U.S. Internal Revenue Service (IRS) site resources to see if they should file resident rather than non-resident tax forms, specifically Publication 519 (U.S. Tax Guide for Aliens). ALL non-residents and each of their dependents must file federal form 8843, Statement of Non-Residence, each tax season even if no income was earned. You should note that being a resident for tax purposes does not mean resident for immigration purposes.
Typical Forms you may Receive
Employers will be sending you a statement of income earned and applicable taxes withheld (W-2) and tax treaty benefits claimed (1042S). Banks will be sending form 1099 which states interest or income earned through their services. You will use information on these forms to assist you in completing your tax forms.
USC W-2’s and 1042S forms are mailed to the address on USC PAYROLL’s file usually by January 15th. Updating OASIS WILL NOT have updated payroll’s database after you registered with payroll for employment. Please wait until January 31st to request a replacement W-2/1042S if it is lost, stolen or never received.
For further information on replacements: http://ais-ss.usc.edu/empldoc/faq/faq9.html#05
Questions: payroll@usc.edu
1. Form 1098-T
If you have any questions regarding this form, please contact the USC Bursar Office.
As an F-1/J-1, please disregard this form in regards to tax filing as it is only needed for U.S. residents and citizens to claim a possible tax exemption (Hope Scholarship and Lifetime Learning Credit) for education expenses. It would not be applicable since you are a non-resident. However, certain nonresident aliens who are married to U.S. citizens or permanent resident aliens and who qualify to file a joint-income tax return, may, in some cases qualify to claim the credits.
Also, a "dummy" or placeholder Social Security Number (SSN) may appear on this form. If you do not have an SSN, this place holder number is not a valid SSN to use.
Sample form: 1098-T
2. Form 1042-S
The purpose of this form is to report U.S. taxable income and U.S. income tax withholding for:
· Scholarships, fellowships or grants awarded to students or postdoctoral fellows and compensation for services rendered.
· Income claimed as exempt from U.S. income tax under a tax treaty. Treaties are claimed by filing form 8233.
Sample form: 1042-S
If you did not receive a 1042-S, and believe your should have, or lost it, please contact USC payroll at payroll@usc.edu or USC payroll website.
3. Form W-2
This form shows all income earned and income tax at the state and federal level that is withheld. You would receive a W-2 for each employer and thus may have multiple W-2's to use.
Sample form: W-2
If you did not receive a 1042-S, and believe your should have, or lost it, please contact USC payroll at payroll@usc.edu or USC payroll website.
4. Form 1099
This form shows any interest earned on bank account, stocks, funds, etc. which you may need to claim.
Sample form: 1099
Filing for Taxes
You will use Forms W-2, 1042-S and 1099, if received and applicable, to fill out your federal and state tax forms. For additional information go to www.irs.gov.
Go to CINTAX
Tax Treaties:
Some countries are eligible for varying amounts of income exemption from taxation under tax treaties between their home government and the United States. IRS Publication 901 lists current U.S. tax treaties. If you were paid through USC and entered into the USC non-national payroll system (GLACIER) in a timely manner, these treaties should have been applied to your status. CINTAX will assist you in claiming a tax treaty if you are eligible as you complete your federal forms 1040NR or 1040NR-EZ even if form 8233 was not filed with the US government in the applicable tax year. If you need to set-up a tax treaty withholding exemption with an employer other than USC, they would use IRS form 8233. Please note that tax treaties only pertain to federal and not state or local taxes.
F.I.C.A. Taxes (Social Security & Medicare):
History
F.I.C.A. stands for the Federal Insurance Contributions Act which is a taxation on income earned where the funds are used for federal programs that provide benefits for U.S. citizens and permanent residents when they retire, are disabled, or are the children of deceased workers. Funds withheld for F.I.C.A. are reflected on paycheck stubs and also in boxes 4 and 6 of your W-2.
Internationals and F.I.C.A.
F-1 and J-1 student visa holders are typically exempt from paying F.I.C.A. taxes for their first 5 years in the United States and these taxes should not be deducted from paychecks. J-1 scholars and researchers are typically only exempt for 2 years. The mechanism for the exemptions are found under Internal Revenue Code 3121 (b)(19) and is available to persons in F-1, J-1, M-1 and Q immigration status. It is a blanket exemption with the only qualification being that the person be a nonresident for tax purposes and that the work is authorized (CPT, OPT, AT). IRS Publication 519 is a good resource, specifically pages 44 and 45.
http://www.irs.gov/businesses...
Obtaining Reimbursements of F.I.C.A. Witholdings
If your employer has mistakenly withheld F.I.C.A. taxes, you must work with them directly to request a reimbursement. If they will not assist you, you can file Internal Revenue Service (IRS) forms 843 or 8316 to request reimbursement. Please note that J-2’s with work authorization are not exempt from FICA taxes. www.irs.gov.
Assistance with filling out request for FICA reimbursement - University of Texas - Austin
Further information on Social Security Numbers (SSN) and SSN cards:
Social Security Number Information
State Taxes
State of California Taxes
We offer free State of California workshops to assist you with filling-out your CA tax form (540NR) and state tax booklets are available at the OIS front desk. Please bring your completed 1040NR from CINTAX and any W-2’s received to the sessions.
State Tax Sessions:
| Date |
Time |
Location |
| Thursday, February 19 |
4-6pm |
SLH 200 |
| Friday, March 27 |
4-6pm |
THH 202 |
| Monday, April 6 |
4-6pm |
OHE 132 |
Sample 540NR provided by the CA Franchise Tax Board
Other States
If you need to file income tax returns for states other than California, please go to the following link for more information: http://www.taxadmin.org/fta/link/forms.html
You can also purchase tax software such as TurboTax or TaxCut but please remember that non-nationals CANNOT E-file their returns but must print hard copies to sign and mail. These software bundles will not be able to assist you with filing of your federal return so please use CINTAX.
Tax Links/Resources
Federal website, Internal Revenue Service: www.irs.gov
- 1040NR and 1040NR-EZ
- Form 8843 – Statement of Non-Residence
- Publication 519 – (U.S. Tax Guide for Aliens)
- Publication 901– (U.S. Tax Treaties)
- Form 8233 – Request for tax treaty exemption
- Form 843/8316 – Incorrect withholding of FICA tax
State of California website: www.ftb.ca.gov
Other state websites: http://www.taxadmin.org/fta/link/forms.html
Amended Returns
If you have filed incorrect tax forms, OIS strongly encourages you to use the services of either a Certified Public Accountant (CPA), tax attorney or licensed tax firm to correct your tax filing and return any reimbursements you were not eligible for. These services will incur a charge and you can contact them for estimates.
Understand that when you submit any tax forms to the U.S. government, you are making a legal and recorded statement of status and eligibility which must be correct. False filings can seriously impact future immigration eligibility and status.
Please note that amended returns should be filed as soon as possible to avoid any penalties. Neither OIS nor CINTAX can assist you with filing an amended return.
Some resources for filing the 1040X:
Joseph M. Perumbral
TaxAlly International, Inc.
6399 Wilshire Blvd, Suite 503
Los Angeles, CA, 90048
Phone: 323.951.4954
Fax: 323.951.4964
Cell: 310.736.8626
perumbral@sbcglobal.net
H&R Block Tax Preparation Services
3020 S. Figueroa St.
Los Angeles, CA 90007
Phone: (213) 745-4741
**Non-residents cannot E-file (electronically file) tax forms but will need to print them, fill them out and mail them as hard copies to the federal and state governments.
Please note that the staff of OIS is not trained or licensed to answer questions concerning your tax situation or offer tax advice. USC students or scholars should consult tax professionals for specific tax advice.
